Incentives for Eco-efficiency. Market Based Instruments for Pollution Prevention: A case study of the steel sector in India

Mounting pressures on industry to reduce pollution, to remain globally competitive and to meet the requirements of international standards require fundamental changes in government policy and corporate approaches to environmental management. This report presents the result of an international study assessing the potential for market based instruments for pollution prevention in the steel sector in India. It recommends a set of policy measures to reduce discharge levels in the most cost effective manner, to induce firms to adopt cleaner technologies and to encourage firms to economise on energy and water resources. In this regard, the importance of achieving coherence with existing policies, building trust among key stakeholders and graduallly phasing in market-based instruments is emphasised.